The government scheme has been introduced to help working parents with the cost of childcare. From April 2017, for every £8 a parent pays in, the government will pay in an extra £2. Parents can receive up to £2,000 per child, per year, towards their childcare costs making a total amount of £10,000. Higher limits of £4,000 and £20,000 apply for disabled children.
To be eligible for the scheme, the parents within the applying household must meet a minimum income level of £120 per week based on working 16 hours, and earn less than £100,000 per year. The scheme is available for children up to the age of 12, or 17 for children with disabilities.
The scheme is available by the end of 2017, and users will need to have an online account which can be used to pay for the care through a registered provider.
For those employers who currently offer Employer Supported Childcare, usually in the form of childcare vouchers, these schemes can remain open to new entrants until April 2018. Existing members will have the option to remain in their existing scheme or change over to Tax-Free childcare as their child becomes eligible.
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